No Charts Today (updated with a chart!)

Wed, Dec 28, 2011 - 10:20am

Because it's all just nonsense. The euro just dropped for no real reason. The incumbent rise in the dollar caused the metals to take the elevator down about 5 floors. Silver has broken through 28 and looks now to be headed toward 26. Maybe by next week we can begin to assess the damage The Cartel is inflicting. Until then, all we can do is watch.

Here's your euro headline, from ZH:

I found this next article on Harvey's site last night. It was also highlighted on ZH yesterday. You absolutely must take time to read it today if you haven't already. It's a challenging read in that there's a lot of economic stuff that, if you're not patient with it, can glaze you over real fast. My advice is: be patient with it. Take your time and read it carefully.

Just a few more words about OI and the gradual demise of the Comex. First, another link. This one is from JS Kim. He covers many of the things we began discussing here about three weeks ago. It's a good summary, though, and worthy of your time:

As we speculated earlier this month, total OI in the metals continues to decline. Gold looks like it may soon fall under 400,000 contracts. Again, what I believe we are seeing is a trend of investors and traders simply walking away from the Comex. After MFGRAP, why would anyone in their right mind buy and hold gold and/or silver through that system? The drop in OI will be gradual but over time, as participation wanes, the Comex will simply become less and less significant in setting the physical price of the PMs.

We all have high hopes that PAGE will accelerate this demise. News yesterday caused great concern that the opening of the PAGE may be delayed or canceled.

I've tried to get some additional information on this but I'm not making much progress. It seems to me that this is a crackdown, by the Chinese government, on non-governmental exchanges and PAGE is, of course, a government-sponsored entity. Let's hope that all remains on track for a Q1 opening. I will, of course, pass along any additional information that I am able to gather.

As I close, gold is at 1575 and silver is at 27.67. Yikes! I fear that there is more of this to come as The Cartel is clearly in charge this week. There simply aren't enough buyers to counter all of the Cartel selling pressure and, once stops get triggered below previous lows, prices can fall pretty fast. Silver made a low last January around 26.50. That would seem to be where it's headed now. I'm still hoping that 1550-1560 will hold as a bottom for gold. We'll see.

Hang in there. Keep the faith. TF


OK, I lied. I can't help myself. Here's a chart. Actually, it's a repost of a chart from last week.

What I was trying to demonstrate here was that history shows us how gold responds when it hits the main trendline. It has never sharply rebounded. Often, as denoted by the arrows, it skips along the line for 2-4 weeks before moving higher and away from the line. We are seeing the same thing play out today.

Of course this comes with a caveat. The MFGRAP may be changing the rules on this thing. IF gold drops convincingly through 1550 and heads toward 1500, all bets are off. IF, however, this primary trendline continues to support gold (as I think it will), then gold should stop somewhere between 1550 and 1560 before finally rebounding sometime in the next 2 weeks.

Obviously, we are at a critical moment in determining the future trend of paper gold. Watch things closely. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


vamoose1Chicken Little
Dec 28, 2011 - 4:38pm

@ squack,

what is silver.......................its a rare earth metal.....even more versatile...same bat time same bat channel.

Dec 28, 2011 - 4:30pm

Ya got to love it

Here we are, between xmas and new years, low liquidity in the market--so we thought.

SPY trading vol up but GLD/SLV and GDX trading vol way up

I wonder how much of trading is by the same entity back and forth.

Someone called this recent price action "standard". I ask "what is standard".

My biggest concerns: all the social flack we get from the econ situation we are in when the govt is doing the pump and dump. Next biggest concern: When the SHIF, our PM probably will not mean much even if we have more wealth than others.

Then the obvious concern--the govt fesses up and admits to covert QE and PMs go ballistic as many of us try to get back in.

Anybody remember this morning when gold was actually green for a couple of minutes. Then about 30 minutes before NY open it started the selloff and except for some end of day rally it was pretty much downhill.

And for the person saying sell into a rally--what rally?

Dec 28, 2011 - 4:28pm


AIG went from upwards of $1450 a share in 2007 down to $23 clams at close today. Was this DEFLATION? Housing prices have fallen 30%+, is this DEFLATION? I find it extremely hilarious to listen to the clowns on CNBC talk about INFLATION-DEFLATION. They say "We are having deflation in assets this week", or "That FED FOMC meeting was highly deflatonary". Or, "Without QE3, Deflation will overtake the markets"

Folks...all this talk of Deflation is pure BOLLOCKS to be blunt.

First off, QE3 has been ongoing. I find it quite interesting that there are people who still ask the question "Will they do QE3?" Anyone who asks this question has taken the FED playbook... HOOK, LINE and SINKER. As Jim Willie, Jim Rodgers and a few others have stated several times, QE3 has been a rolling policy for months now....the MOOO's don't know it as they have not be told on MSM.

Second, we don't need any more printing of money or digits to make the price of gold and silver head toward the moon. Stealing an overused term on CNBC....Extremely high gold and silver prices are already BAKED IN THE CAKE. We just have to be patient for mass psychology to do its work.

Third...Deflation is something that occurs in a monetary system that has a SOUND CURRENCY. Anyone here know of any country that has a sound currency raise your hand. I have an interesting chart that goes back to 1932 and shows the US Treasury balance sheet. I plan on putting that in my upcoming article. There is no deflation....its just VOLATILITY GONE MAD.

Lastly... I just got done looking over JP Morgue's balance sheet and 2010 annual report. What a thrill to know that their supposed $2.28 trillion in assets include MBS, Sovereign Bonds, US Treasuries, and a whole list of additional worthless crap.

Folks... we got the Fundamentals on our side.

York Rite
Dec 28, 2011 - 4:14pm

Wynter Benton gold and silver award winners 2012

Sponsored by JP Morgan and HSBC in association with various other criminals. A little presumptuous, I know, but these two numb nuts are red-hot faves. In the silver category, James Turk. One month ago he predicted $58-$60 'in a few months.' The price on the day he made the call was $31.70. Yesterday he defined those few months as 'by the end of March' and upped the forecast to $70. As ever since September whenever he's opened his trap the price has nosedived and today's action continues that familiar pattern. Bob Chapman is the sole contender in the gold category with his $3,000-$3200 by the end of February prediction. It's evident from the video that he gave credence to JPM's $2500 by year's end 2011 call.

Dec 28, 2011 - 4:14pm

dont worry

the fundamentals have not changed. TPTB are trying to scare the metals out of your hands! We have known this for a long time now. with folks giving the finger to paper metals, they are the ones scared!

the separation of paper and physical price is what is taking place.

please do not play into their hands. keep your metals, they are the only thing of true worth.

the wall street delta bravos and their dis-info agents are everywhere, wanting you to put your money where they can steal it.

trust in the reasons that made you put your fiat in safe assets in the first place, and do not pay attention to the fake, rigged game that they are trying to beat you down with.

I can still see the bright shine of gold and silver through the smoke and mirrors...

Dec 28, 2011 - 4:06pm


Could you explain why you cannot escape deflation in your opinion? I would argue that the more money that is printed and in the system the more prices will rise, the less the dollar will be worth and that people would be less likely to sale a loaf of bread for $4 than they would for $8. Is it because you think people will shun the dollar outright and just not want to exchange hard assets for paper?

Dec 28, 2011 - 4:04pm

I can resist SVM @6

It's Sandstorm under 1.15 that's making me check my available cash balances. Bid in at 1.11 for a small amount didn't fill today. I was close, though.

Dec 28, 2011 - 4:01pm


It is a silver company based in China that pays a dividend right? Doesn't seem like a bad miner to pick up... unless we go to war with Iran/China/Russia... Not certain what would happen in that situation.

Barring boating accidents I think stacking physical PM's is a safe bet.

Dec 28, 2011 - 4:00pm


I do not believe that what we are seeing is true deflation. Bennie is so afraid of deflation that he will be out in the streets cranking the arm on the printer himself before he lets deflation happen. He will print trillions upon trillions to avoid it.

​We've seen it, but it's not off the leash yet. The printed before there was panic. Does anyone think they will (or can) exercise restraint in a panic? He's said it over and over again during his career, never dreaming he would be a position where we could use his words against him. He said he will print, rest assured, when all the parts of the machine are ready, you will see real printing. Then you will see the happy sugar buzz, then the frown on Ben's face as he pushes "print" again, and then the real panic sets in. You cannot escape deflation, but you can devalue and create the illusion of inflation for a period of time, and he will, no matter the costs.

Dec 28, 2011 - 3:51pm

Must resist SVM @ $6....

Must resist SVM @ $6....

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